By Scott Murdoch
(Reuters) – China’s Ping An Insurance is exploring the possibility of issuing a convertible bond valued at up to $5 billion, as per sources familiar with the matter.
One of the sources mentioned that the bond could potentially raise between $2 billion and $5 billion, with a deal anticipated to be finalized in the coming weeks.
Due to the confidential nature of the information, the sources preferred to remain anonymous.
In a filing with the Hong Kong Stock Exchange on Wednesday, Ping An disclosed that it has obtained shareholder approval to issue debt over the next three years.
“The company will make decisions regarding any financing within the authorized scope granted during the annual general meeting, with the aim of maximizing shareholders’ interests and aligning with business development and capital plans,” the regulatory filing stated.
However, there was no explicit mention of a convertible bond being currently under consideration.
If Ping An proceeds with a convertible bond issuance, it would join the trend of Chinese corporates issuing convertibles, following in the footsteps of Alibaba Group, which raised $5 billion in May.
The plans for a convertible bond deal by Ping An were initially reported by Bloomberg News on Tuesday.